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Autodesk (ADSK) Surpasses Market Returns: Some Facts Worth Knowing

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In the latest market close, Autodesk (ADSK - Free Report) reached $281.67, with a +1.43% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.61%. Meanwhile, the Dow experienced a rise of 0.97%, and the technology-dominated Nasdaq saw an increase of 0.33%.

Prior to today's trading, shares of the design software company had gained 7.03% over the past month. This has lagged the Computer and Technology sector's gain of 8.6% and outpaced the S&P 500's gain of 5.36% in that time.

The investment community will be closely monitoring the performance of Autodesk in its forthcoming earnings report. The company is predicted to post an EPS of $2.11, indicating a 1.93% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.56 billion, indicating a 10.51% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $8.24 per share and a revenue of $6.11 billion, demonstrating changes of +8.42% and +11.07%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for Autodesk. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.08% increase. Currently, Autodesk is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, Autodesk is currently being traded at a Forward P/E ratio of 33.69. This expresses a premium compared to the average Forward P/E of 29.59 of its industry.

It's also important to note that ADSK currently trades at a PEG ratio of 2.45. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Computer - Software stocks are, on average, holding a PEG ratio of 2.53 based on yesterday's closing prices.

The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 107, finds itself in the top 43% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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